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Health-Reform is Constitutional: Here are the Tax Implications (Taxes and more taxes)
Fox News ^ | 6/28/2012 | by Bonnie Lee

Posted on 06/28/2012 5:49:22 PM PDT by tobyhill

In a landmark decision, the Supreme Court upheld the president’s signature health-care reform in a 5-4 decision. The court ruled the most controversial aspect of the law, the individual mandate, as constitutional, labeling it a tax and within lawmakers’ power.

So now that the legal uncertainty surrounding the Affordable Care Act has been eliminated, it’s time to delve into the tax implications and when they go into effect.

,,,,

Excise tax: This 2.3% tax on manufacturers, producers or importers on the sold price of a medical device is intended to help cover the cost of the sweeping legislation, but some experts worry it will create more paperwork and increase the costs of the goods. The tax goes into effect after Dec. 31, 2012.

,,,,

More fees and excise taxes: According to a report generated by the Treasury Inspector General of Tax Administration (TIGTA), a whopping “40% excise tax will be imposed on high-cost, employer-sponsored coverage if the value of coverage exceeds $10,200 (self-only) or $27,500 (not self-only),” to be paid by the coverage provider. The tax on distributions from Health Savings Accounts (HSA) and Archer Medical Savings Accounts for payment of unqualified medical expenses increased to 20% from 10% prior to 2011. A hospital insurance tax of 0.9% will be levied on high-income taxpayers ($250,000 married filing joint, or $125,000 single) effective after Dec. 31, 2012.

Beginning in 2013 the deduction for expenses allocable to Medicare Part D will be eliminated. Also the threshold for deducting medical expenses will increase to 10% from 7.5% of adjusted gross income. So if your medical expenses total $10,000 and your adjusted gross income is $100,000, your medical deduction will be zero. Prior to 2013 you would have enjoyed a $2,500 tax deduction.

(Excerpt) Read more at foxbusiness.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: abortion; deathpanels; obamacare; obamacaretax; tax; taxes; zerocare

1 posted on 06/28/2012 5:49:27 PM PDT by tobyhill
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To: tobyhill

So it’s okay to tax a person who works so everyone else who doesn’t work and runs around in OWS can have it free? I get it, the current Supreme Court figures they can turn America into the Borg Collective.


2 posted on 06/28/2012 5:51:44 PM PDT by Morpheus2009
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To: tobyhill

Should the ice cream manufacturers lobby....would sitting down for a ball game or movie, and not eating ice cream, would I be liable for ice cream inactivity tax Mr. Roberts?


3 posted on 06/28/2012 5:54:59 PM PDT by Varsity Flight (Phony-Care is the Government Work-Camp: Arbeitsziehungslager)
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To: tobyhill

This article tells it like it is. It’s a tax and congress has that authority. The dems didn’t want to call it a tax and they got away with it. Now it’s law and it will stay law. This is the final nail in this nation’s coffin. This will bankrupt us. Hopefully after I’m dead and gone. Killed by a death panel.


4 posted on 06/28/2012 5:55:53 PM PDT by Terry Mross ( To all my kin: Do not attempt to contact me as long as you love obama.)
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To: tobyhill

How many still think Obama will not tax anyone making less than $250,000 a year?

Anyone??

John Q. Ciotizen has just been F’ed by the United States Supreme Court and it’s liberal side starring Justice Roberts.

Thank you BO , Pelosi, Reid and the Democrat party.


5 posted on 06/28/2012 6:02:13 PM PDT by Venturer
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To: Morpheus2009

Unlimited power to tax always and I mean always leads to slavery. This is why our founders hated taxation because it bound us in enslavement to a monarchy. Now those who work are being enslaved by a federal government who does not feel that all should work for whatever reason they are just entitled to your hard earned cash and physical labor.

This is slavery and it will get worse as the money supply dwindles. This is the way civilizations die. The best are always destroyed and the country may go for untold decades or centuries without progress unless of course some other opportunistic country steps in and takes over. In either case the greatest nation in known history will be gone.


6 posted on 06/28/2012 6:04:45 PM PDT by formosa (Formosa)
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To: Terry Mross

The problem with the SCOTUS ruling it’s a tax is that people who pay the tax for not buying insurance is being taxed on a nothing. Roberts just returned us to exactly the reason why we broke away from England.


7 posted on 06/28/2012 6:05:58 PM PDT by tobyhill (Conservatives are proud of themselves, Liberals lie about themselves)
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To: tobyhill

For later reading


8 posted on 06/28/2012 6:10:29 PM PDT by NewHampshireDuo
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To: tobyhill

This is just the tip of the iceberg. You think govt is corrupt now just wait until these bozos get in full swing. Scary.


9 posted on 06/28/2012 6:13:14 PM PDT by waxer1 ("The Bible is the rock on which our republic rests." -Andrew Jackson)
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To: tobyhill
I haven’t figured out all the tax and expense consequences - someone smarter than me with tax experience should create a model. But anyway this morning I ran a few scenarios though Kaiser's ASA subsidy calculator and here's what I got. Let's say you make $100,000 with a family of four and are self employed. Kaiser says the cost of your premiums will be $24,000. If we assume taxes of $40,000, State, Local, Federal, SS, etc., this leaves $36,000 on an income of $100,000 for every other purpose.

If you make $60,000 the same healthcare would cost you $5000 out of pocket. If we assume a $20,000 tax bill the remaining income is $35,000.

This law aims directly at the upwardly mobile and small business men. Who is going to bust their ass to make $1000 extra bucks. The smart money will figure the break even point and only work to that level. I'm an It contractor and maker about $70,000 a year plus my private pension from a past employer of $30,0000. You can bet I will not be busting my ass working to make that extra $30K when it will all go to medical insurance and taxes.

This is the death knell for the economy - absolutely no incentives.

10 posted on 06/28/2012 6:13:55 PM PDT by oncebitten (Obama: could not get a clue if he were covered in clue musk and standing in a field of horny clues.)
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To: tobyhill; All

I was told that as of Jan 1st, 2013 a FOUR PERCENT tax will be imposed thru Obamacaretax on the seller on the total sale price of their house or property.

Any other FReepers heard of this??


11 posted on 06/28/2012 6:16:34 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Varsity Flight

The best one I heard is John Boehner should draft a bill requiring every US Citizen to purchase a gun.


12 posted on 06/28/2012 6:17:09 PM PDT by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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To: Venturer
The tax penalty starts with salaries 65K that is way under $250K. Obama is a liar and an evil son of a bitch. Sorry for the curse word I can't stand him and I am really sad today. I am also sick of the talking heads who are saying this is a win for Obama or it will be a win for Romney the point here is the American People are screwed while the politico's on both sides of the aisle always come out on top. Shame on the President the Court and Congress and shame on the people who voted for Obama and I hope they all get taxed and have no insurance and get sick and are put on a waiting list are you reading this DU
13 posted on 06/28/2012 6:20:42 PM PDT by funfan
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To: musicman

I think I remember hearing about the RE sale tax. Hello, houses just got 4% cheaper!


14 posted on 06/28/2012 6:21:04 PM PDT by oncebitten (Obama: could not get a clue if he were covered in clue musk and standing in a field of horny clues.)
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To: Terry Mross

Not a coincidence that SCOTUS ruled against Stolen Valor citing the right to “lie”. That’s exactly how ObamaCare was sold to everyone.


15 posted on 06/28/2012 6:23:24 PM PDT by Kaosinla (The More the Plans Fail. The More the Planners Plan.)
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To: OrioleFan

Firearm inactivity. Lobby hard.


16 posted on 06/28/2012 6:30:24 PM PDT by Varsity Flight (Phony-Care is the Government Work-Camp: Arbeitsziehungslager)
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To: tobyhill

Country is broke and the economy is in the tank

Ain’t no money for this monstrosity and the GOP better use
that in the election campaign


17 posted on 06/28/2012 6:32:33 PM PDT by uncbob
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To: musicman
Obama Admin. Actuary Finds Unsustainable Status Quo Cheaper than Obamacare

http://spectator.org/blog/2009/11/16/obama-administration-actuaries

One of President Obama's primary justifications for pushing health care legislation has been that the status quo is "unsustainable" because of the skyrocketing cost of medical care in the United States. The way to rein in costs, he argues, is to do adopt the policies that he and his fellow Democrats are proposing. But a new report by the government actuary at the Centers for Medicare and Medicaid Services, a branch of the Obama administration's Department of Health and Human Services, has found that the exact opposite is true. CMS took a close look at the health care bill that was passed by House Democrats and endorsed by the White House, and it found that not only would the bill not reduce health care costs -- it would increase them. Time and again, we have been reminded that the United States spends a higher percentage of its GDP on health care than any other nation -- about 16 percent. As Obama but it in his June speech to the American Medical Association, "If we fail to act, one out of every five dollars we earn will be spent on health care within a decade." Yet if we adopt the legislation supported by Obama -- which finances expanded coverage through tax increases and Medicare cuts -- health care spending will actually rise to 21.1 percent of GDP, according to CMS, compared to 20.8 percent if we simply do nothing.

------------------------------------------------------------

The two reasons they gave for the "overhaul" to healthcare: "to cut costs" - NOPE ,costs will go up actually. "to insure everyone" - NOPE, 10’s of millions will still be uninsured. In other words, the plan is a total failure. This is about power and control.

A little known fact of the Obamacare Law (among many other unpleasant surprises in the fine print you can be sure) is a 3.8% tax to be imposed when you sell your home--most people's greatest or only asset. 3.8% to Uncle Sam right off the bat. So how will that tax impact those who are involved in distress sales, who are underwater on their homes?

http://online.wsj.com/article/SB10001424052748704113504575264513748386610.html

18 posted on 06/28/2012 6:33:05 PM PDT by TurboZamboni (Looting the future to bribe the present)
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To: funfan

When the people find that they can vote themselves money,
that will herald the end of the republic.
Ben Franklin:

It’s friggin over.


19 posted on 06/28/2012 6:33:38 PM PDT by Venturer
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To: TurboZamboni

Thanks for the ping and info!!


20 posted on 06/28/2012 6:49:53 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Terry Mross

That made me think of a great bumper sticker. Kill the death panel before they kill you!


21 posted on 06/28/2012 7:00:55 PM PDT by Boiling point
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To: Venturer
The tax penalty starts with salaries 65K that is way under $250K. Obama is a liar and an evil son of a bitch. Sorry for the curse word I can't stand him and I am really sad today. I am also sick of the talking heads who are saying this is a win for Obama or it will be a win for Romney the point here is the American People are screwed while the politico's on both sides of the aisle always come out on top. Shame on the President the Court and Congress and shame on the people who voted for Obama and I hope they all get taxed and have no insurance and get sick and are put on a waiting list are you reading this DU
22 posted on 06/28/2012 7:02:03 PM PDT by funfan
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To: tobyhill
In a landmark decision, the Supreme Court upheld the president’s signature health-care reform in a 5-4 decision. The court ruled the most controversial aspect of the law, the individual mandate, as constitutional, labeling it a tax and within lawmakers’ power...actually, not - they ruled the mandate as originally described as a function of the Commerce clause was unconstitutional, then in effect rewrote the law to make the mandate constitutional if it were constructed as a tax - thus presumably adding to the education of the former lecturer in constitutional law.....
23 posted on 06/28/2012 9:10:51 PM PDT by Intolerant in NJ
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To: musicman
I thought is was true, but it is not (for most):

Yes, the health law will impose a 3.8 percent tax on investment profits and other non-wage income starting in 2013. But that tax applies only to couples with adjusted gross income of $250,000 (or individuals with AGI of $200,000). About 95 percent of households make less than that, and will be exempt from the law no matter what. In addition, couples who sell a personal residence can exclude the first $500,000 in profit from tax ($250,000 for singles). That would be profit from a home sale, not proceeds. So a couple that bought a house for $100,000 and sold it for $599,000 would owe no tax, even under the health law.

http://www.forbes.com/sites/beltway/2012/04/02/there-is-no-obamacare-tax-on-most-home-sales-really/

24 posted on 07/02/2012 11:59:06 AM PDT by TurboZamboni (Looting the future to bribe the present)
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